SME INVOICE DISCOUNTING

INDEbank provides bridging Finance through an invoice discounting facility to SME suppliers against documents evidencing that a bona fide trade transaction has taken place between the SME supplier and the approved buyer.

How it works

• The supplier must irrevocably assign the expected payment proceeds to INDEbank with the buyer duly acknowledging the assignment.

• The bank prepays the approved buyers’ short-term obligations where there is satisfactory evidence that the buyers have agreed to settle their obligations to the beneficiary SME suppliers at a future date, maximum 90 days.

• The beneficiary SME must open an active current account in our books.

Benefits

• The product provides financing to SME suppliers of services and products with the view to empowering them and promoting their growth.

• This product aims at empowering the Malawian SME suppliers and promoting them through providing finance against bank approved confirmed invoices.

Other Features

• The invoice must have a maximum tenor of 30 days or part thereof

• Pricing is between 5% and 8% per month or part thereof of total facility amount, depending on the suppliers perceived credit risk, track record and tenor.

INDEbank is a Licensed Commercial Bank that is “Growing, with SMEs in mind”.